RE: Partial Capitulationtomgra0,
The assets in the ground of Northern Orion to market cap are truly stellar. I did a comparative valuation of Goldcorp and Northern Orion and I was completely shocked at the difference in valuation of core assets between the two companies. I expected to find perhaps a 3x valuation for Goldcorp compared to Northern Orion, but I found Goldcorp was being valued at about 10-20x the valuation being given to Northern Orion. If Alumbrera's assets could be used to help capitalize some of developing Agua Rica, buying out Northern Orion would be exceptionally good for Goldcorp. It would give them 50% of Alumbrera. Alumbrera has about 9 years LOM left. The capital costs on Auga Rica seem much higher for the project than most projects of the same size because of geology, but it would give an average of 300 million pounds of copper per year.